Wednesday, July 8, 2015

The Impending Consequences of Liberal Progressive Socialist Economics

Former Prime Minister Margaret Thatcher once stated, “The
problem with socialism is that you eventually run out of other people's
money.” The fallacy of progressive socialists is that they believe such
to not be true. It is their belief that there is a constant revenue
stream emanating from the so called “wealthy” to fund the social
utopianism and they leverage the mantra of class warfare in order to
achieve those ends.

The liberal progressive leftists are very clever in their
manipulation of language such as fair share, fairness, income
inequality, and economic patriotism. Combined with a complicit liberal
progressive media they are able to promulgate their message usually
without any real policy challenge. Current case in point is the proposal
by one avowed socialist running for the presidency, Vermont Senator
Bernie Sanders. He has proposed a 90 percent income tax on “top
earners.” When Senator Obama was running for the presidency in 2008 he
claimed it better when we “spread the wealth around.” Of course these
two astute gents are referring to the top one percent who are currently
paying nearly 40 percent of overall income taxes in the United States.
The estimate is that the top 10 percent of wage earners in America pay
nearly 70 percent of all income taxes while there is almost 50 percent
who only pay 3 percent — many receiving refunds.

This is set amid the backdrop of what is happening in Greece. There
the left wing government of young Prime Minister Alexis Tsipras has just
defaulted on a 1.6 billion Euro (approximately $1.66 billion) loan from
the International Monetary Fund. And on Sunday, based upon PM Tsipras’
encouragement, Greece voted no to any austerity measures to assist in
regaining its economic stability. This is the dream world of progressive
socialist economics in that we can spend all the money we want in order
to promise everything to everyone and someone else is responsible for
the supplying of the monetary resources to bring the pipe dreams to
fruition.
Nero fiddled while Rome burned. The Greeks cheered Sunday. And President Obama sings Amazing Grace.

The American economic situation is not that sound either. We are
currently sitting on $18.3 trillion in debt which at the beginning of
the Obama administration was $10.67 trillion. The estimations are that
by the time the Obama administration has run its course the American
debt will sit at $20 trillion. I do not think that many grasp the
gravity of the situation in that one president has created almost more
debt than all previous combined. Of course President Obama castigated
President Bush for being un-American/un-Patriotic for increasing the
debt by far less.

But when one considers the mandatory spending side of our budget —
Medicare, Medicaid, Social Security, and net interest on the debt – our
actual debt with these unfunded liabilities jumps to nearly $100
trillion. And the mandatory spending side of our budget takes up
approximately 63 percent of our revenues. There is no way to tax our way
out of this problem. Furthermore, we are entering into very dangerous
shark infested waters in that our Gross Domestic Product (GDP) is
lagging behind our debt.

And sadly the economic policies of the Obama
administration are more focused on buying votes with the largesse of the
public treasury — such as the recent overtime executive order — than
growing our economy. It is as Scotsman Alexander Fraser Tytler stated,
“A democracy cannot exist as a permanent form of government. It can
only exist until the voters discover that they can vote themselves
largesse from the public treasury. From that moment on, the majority
always votes for the candidates promising the most benefits the public
treasury with the result that a democracy always collapses over lousy
fiscal policy, always followed by a dictatorship. The average of the
world’s great civilizations before they decline has been 200 years.
These nations have progressed in this sequence: From bondage to
spiritual faith; from faith to great courage; from courage to liberty;
from liberty to abundance; from abundance to selfishness; from
selfishness to Complacency; from complacency to apathy; from apathy to
dependency; from dependency back again to bondage.”

Being in gross debt is nothing more than a manner of bondage. And the
objective of progressive socialist economics is to promote selfishness
and envy as a means to their ends. It creates a dependency upon
government largess and that ladies and gents advance the new economic
plantation upon which many find themselves occupying.

The government grants free things without the inherent duty of fiscal
responsibility — after all, in the dream of a social utopia, everyone
is entitled, that is fairness. It is as I state the desire to advance
the ideal of equality of outcomes as opposed to equality of opportunity.

Those who think the episode in Greece is far from possible in America
should consider the growing list of American cities facing bankruptcy.
Of course topping that list is Detroit, then we have Stockton, CA,
Compton, CA, Oakland, CA, Fresno, CA, Harrisburg, PA, Providence, RI,
Jefferson Co (Alabama, Birmingham), and there are others. We have states
that are having their bond ratings lowered. I remember a maxim that
says nothing can be stronger than the sum of its parts. If that be the
case, we have many parts in our American economic structure that are
failing – it could only be a matter of time, again.

The liberal progressives of the Carter administration decided
everyone had a right to own a home – and created the Community
Reinvestment Act. It was government’s attempt at social egalitarianism. Thirty years later, as a sum of subsequent policy missteps, the
consequence was a financial collapse.

Today it is Greece, tomorrow it could be Portugal, Italy, Ireland, or
Spain…and unless we restore the principles of an opportunity economy,
it will be these United States of America.

EMAIL FOLLOWERS

Follow My Posts by Email

The Patriot Factor

I am an American Patriot...part of the grassroots movement of bloggers spreading the truth the media will not. I am also co-host with Craig Andresen of RIGHT SIDE PATRIOTS on RSP Radio at: https://streamingv2.shoutcast.com/right-side-patriots